Identity theft from Belgian intermediaries: beware of fraud

In the past few months, the FSMA has once again observed several cases of theft of the identity of Belgian insurance intermediaries by English-speaking fraudsters. The swindlers wrongfully use the registration of such intermediaries in the registers of the FSMA to gain consumers’ trust.

Fraudsters usurp the names of insurance intermediaries that are registered with the FSMA, in order to make it seem as if they were authorized by the FSMA.

They fraudulently use the name and other legally required information of authorized companies. In order to convince you that they are duly authorized, they often refer to the FSMA’s official website. You will thus be tricked into thinking that you are dealing with a regulated company, whereas in fact this is a fraudster who has stolen the said company’s identity.

In most cases, the fraudsters create a website with a web address that corresponds to the name of the intermediary whose identity they have stolen.

What services do these fraudulent entities offer?

The FSMA distinguishes between two situations:

• The fraudsters contact consumers unsolicited, often by telephone, and offer them investments in shares or bonds. To this end, they use a professional-looking, English language website. But these are purely fictitious financial instruments.
• The fraudsters contact victims of a previous investment fraud, offering to help them recover their lost investment. But in order for the victim to receive the promised assistance, he or she must first pay a fee. This is recovery room fraud. 

What do insurance intermediaries do?

Insurance intermediaries offer various services related to insurance, such as providing advice on insurance contracts, proposing and concluding insurance contracts, or helping manage and implement insurance contracts.

Do you have any doubts about the company that has contacted you?

This fraudulent practice may be difficult to detect and avoid. We therefore encourage you to take the following steps to ensure that your contact person is indeed who he or she claims to be:

• Be critical if you receive an unsolicited investment offer via social media or by phone, especially if you are being promised exorbitant returns. If a return seems too good to be true, it usually is! Ask your counterparty for clear and comprehensible information. Never invest in a product if you do not fully understand what precisely is being offered.
• Use a search engine to determine whether the authorized company has its own website.
  
  Beware! Swindlers often use an internet address that closely resembles that of the official website of the company whose identity they have stolen. For example, a slash may be added to the address, a different extension may be used (.com instead of .be), or the identity is stolen from an intermediary that does not have a website.
• Compare the information provided by your contact person with the registered intermediary’s official information. You can do so by consulting the FSMA’s register  or the Belgian Crossroads Bank for Enterprises. 
  
  For example, if your contact person claims to work for a company based in Belgium but is contacting you from a foreign phone number, this should serve as a warning sign. Similarly, you should be wary if the company’s website is in English only, although the company claims to be based in Belgium.
• Be wary if you are asked to transfer money to a bank account in a country that is different from the one where you live or where the company’s registered office is said to be located.
• If you have any doubts as to the identity of your contact person, feel free to contact the services of the FSMA. You can do so via the contact form to report fraud.